Which of the following reflects diseconomies of scale?
A)marginal product decreasing as output increases
B)short-run marginal cost increasing as output increases
C)long-run marginal cost increasing as output increases
D)short-run average cost increasing as output increases
E)long-run total cost increasing by more than double as output doubles

Question

Quizplus · Accepted Answer

E) reflects diseconomies of scale because it indicates that as the scale of production increases, the cost of producing each additional unit increases, which is a characteristic of diseconomies of scale. This is shown by the long-run total cost increasing by more than double when output doubles, suggesting that the firm is becoming less efficient as it grows larger.

Which of the Following Reflects Diseconomies of Scale